ShareWorld HVAC equipment demand on the rise
The Asia/Pacific region was the largest market for HVAC equipment in 2013, with 54 % of the global total.
According to a new study from The Freedonia Group, global demand for HVAC equipment is forecast to increase 5.7 % annually to USD 120 billion in 2018.
Growth will be driven by an expansion of reliable energy sources; increases in income levels in China, India and other developing countries; making HVAC equipment more accessible to more consumers.
The Asia/Pacific region was the largest market for HVAC equipment in 2013, with 54 percent of the global total. Growth will be driven in large part by China, which will account for one-third of world sales in 2018.
India and Indonesia, however, will record the fastest growth worldwide. Rapid economic growth, expansion in electrification and greater product availability have spurred demand for goods such as air conditioners in these and other developing Asian countries, and will continue to do so through the forecast period.
The highly developed markets in Australia, Japan, and South Korea will limit further growth. These countries have relatively high market penetration rates of HVAC equipment, so sales growth will be primarily influenced by weather patterns, as well as by building construction levels and replacement activity.
On a regional basis, North America is projected to achieve the most rapid gains through 2018, with HVAC equipment sales forecast to increase 6.8 % per year from a low 2013 base.
The US, which accounts for the largest share of North American demand, was adversely affected in recent years by the 2007-2009 recession and subsequent slow recovery. This caused consumers to postpone purchases -- either to replace an existing version or to add new equipment -- and to repair used equipment when possible.
Sales growth will stem primarily from a release of this pent up demand. Rebounding housing activity will also contribute to gains, as HVAC equipment is commonly installed when a new house is built or an existing house is sold.
Growth will be driven by an expansion of reliable energy sources; increases in income levels in China, India and other developing countries; making HVAC equipment more accessible to more consumers.
The Asia/Pacific region was the largest market for HVAC equipment in 2013, with 54 percent of the global total. Growth will be driven in large part by China, which will account for one-third of world sales in 2018.
India and Indonesia, however, will record the fastest growth worldwide. Rapid economic growth, expansion in electrification and greater product availability have spurred demand for goods such as air conditioners in these and other developing Asian countries, and will continue to do so through the forecast period.
The highly developed markets in Australia, Japan, and South Korea will limit further growth. These countries have relatively high market penetration rates of HVAC equipment, so sales growth will be primarily influenced by weather patterns, as well as by building construction levels and replacement activity.
On a regional basis, North America is projected to achieve the most rapid gains through 2018, with HVAC equipment sales forecast to increase 6.8 % per year from a low 2013 base.
The US, which accounts for the largest share of North American demand, was adversely affected in recent years by the 2007-2009 recession and subsequent slow recovery. This caused consumers to postpone purchases -- either to replace an existing version or to add new equipment -- and to repair used equipment when possible.
Sales growth will stem primarily from a release of this pent up demand. Rebounding housing activity will also contribute to gains, as HVAC equipment is commonly installed when a new house is built or an existing house is sold.
| % Annual Growth | |||||
|---|---|---|---|---|---|
| 2008 | 2013 | 2018 | 2008-2013 | 2013-2018 | |
| World | 75180 | 91500 | 120500 | +4.0 | +5.7 |
| North America | 16620 | 16440 | 22850 | -0.2 | +6.8 |
| Western Europe | 13645 | 11470 | 14540 | -3.4 | +4.9 |
| Asia/Pacific | 32605 | 49380 | 65050 | +8.7 | +5.7 |
| Central & South America | 3205 | 4470 | 5780 | +6.9 | +5.3 |
| Eastern Europe | 5279 | 4990 | 6110 | -1.1 | +4.1 |
| Africa/Mideast | 3826 | 4750 | 6170 | +4.4 | +5.4 |